Historical issues such as denied claims and opaque processes have eroded consumer trust, which is crucial to growing the sector. Insurers are now focusing on transparency and engaging with customers to restore this lost trust, just like any other means of improving consumer loyalty.
While some progress is being made on a larger scale with the rise of Insurtech startups introducing products in the field of micro-insurance, the large industry needs to catch up on adopting technology making their operations efficient and friendly to its consumers. However, there has been a deep Innovation and Technology Lag, leaving consumers feeling that insurance companies focus more on the collection of their money than on delivering service to them.
This continues to hamper product creativity and affordability for customers against a challenging economic landscape. Insurance companies are pushing for more conducive effects to be stronger through regulatory frameworks that limit innovation. These are some of the factors that lead insurance companies to not reach proper penetration and market capture as in more developed nations.
Insurance is still trying to catch up with the nuances of using technological innovations to drive market capture and win over these challenges. Enhanced analytics are being used to tailor products closer to the customer’s needs and, at the same time, improve risk assessment, making the insurance offering more attractive and relevant to the customer.
Build customer trust using Technological & innovation?
Climate change impacts the risk landscape. Hence, insurers are investing in technologies that might help predict and mitigate the risks. They offer products much more responsive and hence much more aligned with customer needs in the face of the environmental challenge.
Now, the focus is slowly shifting to a more personalized insurance experience, where customers will be able to modify their cover on the fly and even interact with their insurers digitally. This will boost customer satisfaction and position the insurers as an integral and responsive player in the client’s life.
The insurance industry in Eastern Africa is sitting right at an inflection point. Ripe for technological innovation and strategic market adaptation that could catalyze a leap past tradition, unleashing growth. Certain changes may considerably improve the penetration level into the market and, at the same time, contribute to a healthy and stable economy in the region.
Join the conversation and Share your thoughts on how the Eastern African insurance industry should best exploit technological trends to surmount the prevailing challenges and even grasp new opportunities.
